A return of contribution before the due date of your tax return is required to be adjusted for investment gain or loss between the time of the deposit and the time of the return of contribution. With recent drops in the stock market, it's not surprising that the amount distributed would be less than the amount of contribution returned.
I would expect the 2022 Form 1099-R to have code 8 (perhaps along with code 1) and a zero in box 2a indicating that the distribution is not taxable and is not subject to any penalty. Your 2022 tax return will just need to include an explanation statement indicating that the amount distributed corresponded to the amount of contribution returned because of investment losses.
If it was the employer's mistake to have deposited the excess $458, it's appropriate that they not ask you to make up for the investment loss.
